Can U.S. ports measure up to carrier promises?

By Patrick Burnson, Executive Editor
September 15, 2011 - LM Editorial

Daily Maersk, the Danish carrier’s new service on the Asia–North Europe trade lane, will dramatically change the way shipping is done overseas. But can the same be said for calls to the States?

As reported in LM, the engine behind Daily Maersk is 70 vessels operating a daily service between four ports in Asia (Ningbo, Shanghai, Yantian and Tanjung Pelepas) and three ports in Europe (Felixstowe, Rotterdam and Bremerhaven) in what amounts to a giant ocean conveyor belt for the world’s busiest trade lane.

Regardless of which of the four Asian ports the cargo is loaded at, the transportation time – from cut-off to cargo availability – is fixed. Daily cut-offs mean that cargo can be shipped immediately after production without the need for storage.

Maersk Line promises that cargo at the other end will be available for pick-up on the agreed date. To underline that Maersk Line means business and how firmly the company believes in Daily Maersk, the promise is backed up with monetary compensation, should customers’ containers not arrive on time. This promise is a first in the shipping industry.

But can such a pledge be made to shippers in the transpacific? Many analysts don’t think so. Given the relative inefficiency of U.S. ports (particularly at the strike-prone ocean cargo gateways on the West Coast), adhering to a fixed schedule represents a risk ocean carriers may wish to avoid.



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

A new Government Accountability Office report on the effects of changes to truck driver hours of service rules has sparked a war of words between the American Trucking Associations and Federal Motor Carrier Safety Administration, the arm of the Transportation Department that is in charge of making those rules.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in May dropped 10.8 percent annually to $92.7 billion, following a 6.8 percent annual decline to $93.3 billion in April.

Carloads headed down 2.5 percent annually to 286,660, and intermodal containers and trailers remained on a growth path, up 2.3 percent to 270,952.

Rumors of transportation and logistics titan UPS acquiring Chicago-based transportation management services provider Coyote Logistics for $1.8 billion have become a reality, with UPS announcing today that the deal is now official.

Earlier today, the United States Senate signed off on a six-year surface transportation authorization, according to various media reports. The bill, entitled the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act, passed by a 65-34 margin and comes at a time, when the most recent extension for surface transportation funding expires tomorrow, July 31.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA